Here are answers to readers’ queries on the performance of their stock holdings.
What are the short-, medium- and long-term levels for Apollo Tyres and Allahabad Bank bought at ₹190 and ₹120 respectively?
Kishore
Apollo Tyres (₹207.1): The stock of Apollo Tyres has been on a strong uptrend, after taking support in the band between ₹160 and ₹170 in August. The stock surged sharply in recent weeks, after decisively breaching its key resistance at ₹190.
However, the stock encountered a significant resistance at ₹210 and is now testing it. Strong breakthrough of this hurdle can take the stock higher to ₹230 and then to ₹250 levels in the short- to medium-term.
But failure to do so will be a cue for short-term investors to book profits. Investors with a medium-term horizon can consider holding the stock with a stop-loss at ₹170.
Nevertheless, a fall below the significant support zone between ₹160 and ₹170 will mar the stock’s intermediate-term uptrend and pave the way for a decline to ₹135 and then to ₹120. Long-term support for the stock is at ₹100.
Allahabad Bank (₹121.9): The stock fell sharply in early July and found support at around ₹114 and started to move sideways around this support level. Near-term rallies are unable to breach the upper boundary of the sideways range at ₹125.
An emphatic upward break can take the stock higher to ₹140 and ₹150 levels in the short- to medium-term. Traders can hold their long positions with a stop-loss at ₹114 levels.
However, a decisive fall below ₹114 will strengthen the bearish momentum and pull the stock down to ₹100 and then to ₹90 in the medium term.
Long-term trend for the stock is bearish and only a conclusive rally above ₹150 will take the stock northwards to ₹170 and ₹190 levels. Supports are at ₹75 and ₹65.
I purchased Glenmark Pharmaceuticals at ₹300 two years back. Should I book profits or hold the stock?
Vimal Bhatia
Glenmark Pharmaceuticals (₹770.8): The stock has been in a sideways consolidation phase for more than a year in a broad range between ₹500 and ₹600. In late July this year, the stock decisively broke out of the sideways range and gained strong momentum.
It marked a new high last week at ₹789. You can very well consider taking some profits off the table at this juncture, and hold the remaining with a stop-loss at ₹590.
The stock’s short-term uptrend is nearing an end. A downward reversal can pull the stock down to ₹710 and then to ₹670 in the short term.
Medium-term trend will remain bullish as long as the stock trades above ₹650 levels. A fall below this level can pull the stock down to ₹600 in the forthcoming months. The next important long-term support is pegged at ₹500.
Over the long-term, the stock can encounter resistance at ₹850 and ₹900 levels.
I am holding shares of Dena Bank bought at ₹72 and Acceleya Kale at ₹692.
What is the medium- and long-term outlook for these stocks?
Can I accumulate these stocks at every fall to average or do I exit?
Gopinath R
Dena Bank (₹64.1): The stock has been on a medium-term downtrend from the June peak of ₹94. However, this downtrend found support around ₹58 in mid-August and the stock has been on a sideways movement since then.
Last week, the stock surged 7.7 per cent, indicating investor interest. Buy on dips with a stop-loss at ₹58. A fall below this level can pull the stock down to ₹51 and then to ₹43 in the medium- to long-term. On the other hand, an emphatic rally above ₹65 can push the stock higher to ₹70, ₹75 and ₹80 in the medium term.
Accelya Kale Solutions (₹703.3): Since August 2013, the stock has been moving sideways in a broad band between ₹550 and ₹800.
Within this sideways range, the stock has been unable to breach its key resistance at ₹750 in the last two months. On the downside, the stock has immediate support at ₹650, a fall below which can pull the stock down to ₹600 and ₹550 levels in the medium term.
As the stock is trading within a wide sideways range, it is not advisable to buy on declines. Exit the stock on rallies. A strong decline below ₹550 will drag the stock down to ₹450 or even to ₹400 in the long term.
Send your queries to techtrail@thehindu.co.in
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